You might think your ads are working just fine. Impressions are coming in, clicks look steady, and sales are ticking along. But here’s the catch: a setup that looks “okay” on the surface can quietly drain your profits in the background. Wrong match types, mixed SKUs, lazy auto campaigns, or oversized bids don’t always scream trouble right away, but they slowly eat away at margins.

The scary part? Many sellers don’t realize their ad structure is the problem until they’re stuck with high ACoS, shrinking profits, and a budget that feels like it’s on fire. The good news is that you can spot these leaks and fix them. And once you do, every dollar you spend on ads works harder for you instead of against you.

Signs your ad structure is costing you money

Sometimes ads look like they’re running fine, but the setup itself is the hidden leak. Sellers often notice certain patterns that point to wasted spend.

#1: High ACoS with no clear reason

If you’re targeting the right keywords and still see ACoS creeping up, it could be because multiple campaigns are competing against each other for the same terms. This internal bidding war raises your costs without actually winning more customers.

#2: Auto campaigns are eating the bulk of the spend

Auto campaigns are useful, but if they take up most of your budget, you’ll likely spend on irrelevant clicks. Without adding negatives or moving winners into manual campaigns, money goes out without enough conversions to balance it.

#3: Grouped SKUs with mixed performance

When several products sit under one campaign, top performers carry the weight while weaker ones drag down the average. You end up lowering bids across the board and missing out on profit from the products that could have scaled.

#4: Too many broad match keywords

Broad match can bring in traffic, but it often wastes budget on unrelated searches. If you see a lot of clicks with no sales, it’s a sign that the setup is too loose.

#5: Budgets maxing out early in the day

If your campaigns hit “out of budget” by noon, it usually means the structure isn’t balanced. A few overspending ad groups or placements can drain the daily budget before the more profitable campaigns get a chance.

Catching these signs early helps prevent wasted spend and puts you in a position where automation, rules, or manual changes can actually improve results.

Common mistakes sellers make in ad setup

1. Mixing too many products in one campaign

The mistake: Sellers often put multiple SKUs in one campaign, thinking it saves time. The problem is you can’t tell which product is profitable and which one is wasting ad spend. The strong products end up covering for the weak ones.

The fix: Create single-SKU campaigns for best-sellers or higher-budget items. Group products only if they are very similar (same category, price, and audience). This way, you know exactly where your ad dollars are going.

2. Relying only on auto campaigns

The mistake: Auto campaigns are easy to set up, but they give Amazon full control. You’ll get some relevant clicks but also a lot of irrelevant ones, which drives up ACoS.

The fix: Use auto campaigns only for keyword discovery. Regularly move performing terms into manual campaigns where you control bids and match types. Always add negatives to block terms that waste budget.

3. Not separating match types

The mistake: Broad, phrase, and exact keywords in the same ad group make results messy. Broad terms usually eat up the budget, while exact matches (which are often more profitable) stay underfunded.

The fix: Run separate campaigns or ad groups by match type. For example, one ad group for exact, one for phrase, and one for broad. This gives you visibility and control over how each type performs.

4. Overlapping targeting

The mistake: Running multiple campaigns on the same keywords or ASINs causes you to compete against yourself. You pay more per click without adding extra sales.

The fix: Map your targeting clearly. Avoid duplicating the same keyword across too many campaigns. Use negatives if needed to keep campaigns from stepping on each other.

5. Ignoring placement settings

The mistake: By default, Amazon may boost your bids heavily for placements like “Top of Search” or “Product Pages.” If you don’t adjust these, you could overspend on spots that don’t bring strong returns.

The fix: Check placement reports to see which positions convert profitably. Reduce multipliers where conversions are weak and increase them only on placements that consistently drive sales.

6. Lack of negative keywords

The mistake: Without negatives, your ads keep showing up for irrelevant searches—like your coffee mug ad appearing under “coffee maker.” You pay for clicks that will never convert.

The fix: Review search term reports at least once a week. Add negatives for irrelevant or poor-performing terms. This funnels your budget toward searches that are actually likely to convert.

Frequently asked questions

How many keywords should go in a campaign?

There’s no strict limit, but too many keywords can dilute your results. If you add dozens at once, a few end up eating most of the budget, while the rest never get tested properly. A better approach is to start with 10–20 well-chosen keywords per campaign. This keeps data clean and helps you make smarter bid decisions. Once you find more winning terms, create new campaigns instead of overloading one. Clean structures like this form the foundation of strong Amazon PPC advertising management.

When to use one ASIN per campaign (and when it’s okay not to)

One ASIN per campaign is best when you need clear performance data, like for new launches, hero products, or high-budget items. This way, you know exactly how much each SKU is costing and earning. On the other hand, if you sell variations that are nearly identical (same price range, same audience), grouping them makes sense. You save time and still get reliable insights. An Amazon Sponsored Ads agency will often suggest a mix of both, depending on catalog size and goals.

Should I separate match types into different campaigns?

Yes, separating broad, phrase, and exact match into different ad groups or campaigns is one of the simplest ways to keep results clear. Broad match can drive discovery, phrase covers variations, and exact ensures precision. When they’re all lumped together, broad usually eats the budget and makes it hard to measure the rest. Separate setups give you more control over bids and better reporting.

How often should I review campaigns if I’m using automation?

Automation reduces the daily grind, but it doesn’t mean you can ignore your ads. A good rhythm is to check changes 2–3 times a week and do a deeper review once a month. This way, you catch issues early, adjust rules if needed, and ensure automation is working toward your goals instead of blindly following old data.

What’s the biggest reason sellers overspend on ads?

Most overspending comes from either not using negative keywords or letting weak keywords run too long. Sellers often think “more traffic means more sales,” but irrelevant clicks pile up fast. Regularly reviewing search term reports and blocking poor performers is the simplest way to cut wasted spend.

Final thoughts

Most sellers don’t lose money on ads because they aren’t trying hard enough. They lose it because their setup quietly chips away at profits - too many keywords in one place, weak negatives, budgets left unchecked, or campaigns competing against each other.

Putting systems in place that keep you consistent. If you’d rather not wrestle with spreadsheets every day, an Amazon PPC tool like BidBison can take on the repetitive tasks so you stay focused on strategy and growth.